The tendency for people to dislike losing a particular amount more than they like gaining the same amount is called:
A) implicit favourite.
B) bounded rationality.
C) intuition.
D) nonprogrammed decision making.
E) prospect theory.

Question

Quizplus · Accepted Answer

This tendency is known as loss aversion, and is a key concept in prospect theory, which outlines how people make decisions under uncertainty. This theory suggests that people are more sensitive to losses than to gains, and that the emotional impact of losing has a stronger effect on decision making than the emotional impact of gaining. Therefore, the best choice is E, prospect theory.

The Tendency for People to Dislike Losing a Particular Amount